FCC Proposes Rural Digital Opportunity Fund Auction Procedures

The Federal Communications Commission proposed procedures for the first phase of the Rural Digital Opportunity Fund auction, which will make up to $16 billion available for the deployment of fixed broadband networks across rural America. The Rural Digital Opportunity Fund is targeting funding towards some of the least-served parts of the country and October’s Phase I auction could bring high-speed broadband to as many six million unserved homes and businesses in 2020, representing the FCC’s biggest step ever toward bridging the digital divide.

The FCC seeks comment on proposed competitive bidding procedures that build on the successes and lessons learned from the 2018 Connect America Fund Phase II auction. Bidding in Phase I of the Rural Digital Opportunity Fund reverse auction is expected to start in Oct. The FCC now proposes procedures for potential bidders to apply to become qualified to participate in the auction and for the submission and processing of bids to determine winners and assign support amounts. The FCC also seeks comment on the appropriate minimum size of an area to be eligible for funding and proposes pre- and post-auction operational, technical, and financial information applicants and winning bidders would be required to submit.

"To do this right," said FCC Commissioner Jessica Rosenworcel, "we need maps before money and data before deployment. To do this right, we also need to acknowledge that we are not going to do it on our own. We need to work with state and local authorities and not fight their efforts to help bring broadband to their communities. To do this right we also need straightforward procedures to facilitate distribution of funds."

FCC Commissioner Geoffrey Starks said, "When we voted on the Rural Digital Opportunity Fund last month, I raised a number of concerns. Two of the most important were (1) that we are continuing to distribute funds based on deeply flawed Form 477 data and (2) that we have adopted a confusing and counterproductive approach toward coordinating RDOF with state funds. I won’t repeat those concerns here, but I want to underscore that we do not have to let those problems stand. We have options. Nearly two dozen members of Congress have asked us to give states an opportunity to comment on the portions of our January decision that impact state programs and then reconsider that decision. And, just yesterday, Senator Manchin of West Virginia sent a letter urging us to “revise the aggressive timeline” for RDOF “until after the eligibility maps can be challenged and verified.” I believe that fiscal responsibility, prudence, and the law all require us to heed those calls. While I approve of the auction mechanism the FCC adopts today, I cannot support pressing ahead toward an artificial deadline with such significant concerns unresolved. For that reason, I dissent with respect to the remainder of the item, including the auction timeline."